Investors in Steadfast Apartment REIT, a publicly registered non-traded real estate investment trust or REIT, have an opportunity to sell their shares- but at a price far below the REIT’s estimated per-share value of $15.84 a share, or its initial $15.00 a share offering price.
According to Securities and Exchange Commission filings, Comrit Investments I, a Tel Aviv-based investment fund, has commenced an unsolicited tender offer. Comrit has offered to purchase up to 337,268 shares of Steadfast Apartment REIT Inc. stock at a price of $11.86 per share in cash. The offer expires on March 28, 2019.
Steadfast Apartment REIT, a publicly listed non-traded REIT, invests in “multifamily properties” throughout the United States. The REIT closed its public offering in March 2016 and has reportedly raised $788 million in investor equity, as of December 31, 2018. The REIT closed its public offering on March 24, 2016. Steadfast Apartment REIT marketed itself as focused on purchasing established, stable apartment communities with operating histories that demonstrated consistently high occupancy and income levels across market cycles. Despite its characteristic high offering fees and expenses, Steadfast Apartment REIT is purportedly worth slightly more than its offering price of $15.00 a share, with management estimating its NAV at $15.84 a share. However, shares have reportedly recently traded in a limited secondary market at prices as low as $12.70 a share.